Tag Archives: Freddie Mac

August Update

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One of the hottest months of the year in Wilmington, NC is almost over, but the housing market is still on fire! According to recent NC Regional MLS statistics, home sales in New Hanover, Brunswick, and Pender counties combined have seen an 18% increase in home sales compared to last July’s home sales, and the median price of homes dropped about 3%. Similarly, Fannie Mae recently announced that it will maintain it’s forecast for 2016’s GDP at the same 1.8 percent forecasted in July after the second quarter growth was more than 1 point lower than predicted. So why didn’t America hit the predicted mark? According to the source, there was slowed growth in residential, non-residential, government and inventory investment in August. Fannie Mae is confident that August and September’s results will be different.

Now Trending: Roof Decks 

What is one of the most popular trends we’ve seen this summer with real estate development? Rooftop decks in urban areas. As demand for rentals rises and space for outdoor yards decreases in more heavily populated areas, roof decks have become a very popular and sought out addition for renters and those searching for their next purchase. Not only do they provide tenants with a private area to enjoy the sunshine, but they are also usually combined with luxurious amenities like pools, incredible views, fire pits, grills, and most importantly of all- fresh air that many millennials look for when searching for a space to inhabit. So what’s to come with this trend? Expect it to stay for a while. We predict that rooftop decks will become even more popular and expected in urban areas. We also predict to see the trend start popping up in areas that have landscaping for added value.

8 Reasons to Move to Wilmington, NC

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There’s never been a better time to relocate to ILM and its surrounding beaches. Between the bustling downtown river walk scene, the breathtaking beaches, the strong and connected community, as well as and the incredible year-round climate – Wilmington and its surrounding beaches welcomes and has something to offer everyone. What are your reasons to relocate?

  • Beaches- Once you visit North Carolina’s coast, your life is changed forever. Wrightsville Beach, Carolina Beach, Kure Beach, and beaches surrounding Wilmington, NC all offer spectacular views of the Atlantic paired with relaxed southern feel that makes anyone feel at home.
  • Downtown- The bustling downtown scene provides Wilmingtonians with a taste of the city life, with incredible shopping, dining, and nightlife opportunities for people of all ages to enjoy. Take this and combine it with downtown Wilmington’s rich history and landmarks, and you are armed with activities to partake in for years!
  • Community – Wilmington is home to both Cape Fear Community College and UNCW which gives locals opportunity to support the colleges in activities like Midnight madness, cheering on sports teams, and more! The tight-knit Wilmington community also provides many festivals downtown during the year, houses incredible music talent at spectacular venues like Greenfield Lake Amphitheater, and Azalea Fest itself is a great look into Wilmington’s amazing community!
  • Incredible Shopping + Dining- From shopping centers, to one-of-a kind boutiques, Wilmington is an amazing shopping hub for the south east. Whether you are strolling down shops in The Forum, browsing at boutiques downtown, or hitting up one of the local surf shops, ILM loves fashion. Another thing that Wilmington loves is great dining. Fresh seafood and breathtaking views make Wilmington a desirable place for any restaurant to open, but Wilmington houses some of the best restaurants in the state.
  • Proximity- Wilmington is close enough to bigger NC cities like Raleigh and Charlotte for an easy weekend trip, and just far enough to provide the perfect getaway from your friends. When you live in Wilmington, you’re never too far for friends and family to visit! (And once you move to the beach, they’ll want to visit all of the time!)
  • Furry Friends are always welcome- Wilmington loves your four-legged friends! From the loop at Wrightsville Beach, to the many dog parks in the city, your pets are an extension of your family in Wilmington and are even welcomed at many outdoor restaurants! Bring your pup on the dog-friendly beaches, or Java Dog Coffee shop downtown- ILM knows your pets should enjoy the beautiful city as much as you do!
  • Healthy Lifestyle- Wilmington loves being active. From stand up paddle boarding, or running clubs, to yoga on the pier, and everything in between, Wilmington loves supporting healthy and active lifestyles that take advantage of the amazing climate and views the town and surrounding beaches provide.
  • Home Affordability – Not only does Wilmington and its surrounding beaches have a steady real estate market, but the options are endless. Wilmington has high-end homes and communities as well as more affordable options that are still in incredible locations.

Your dream house is waiting for you in Wilmington, NC, and once you find it, Alpha Mortgage  will help you turn your dream house into a reality! Contact us today!

What is a Jumbo Loan & Would I Qualify

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It’s over halfway through 2015 and the luxury housing market is booming. According to the Washington Post, soaring prices and sales in the luxury market are factors due to the rapid growth of “jumbo loans” in the Washington area and around the nation. Nearly 1 in 4 mortgages originated in 2014 around the country were jumbo loans, spurred also by lenders’ efforts to make the mortgages more attractive to buyers. 

What is a Jumbo Loan?

A Jumbo Loan is a conventional mortgage with a loan amount that is higher than $417,000 in most areas of the United States, exceeding conforming loan limits imposed by Fannie Mae and Freddie Mac. Fannie Mae and Freddie Mac, the large financial agencies that purchase the bulk of US residential mortgages from banks and other lenders, allow for institutions to free up money to lend more mortgages to those looking to purchase homes. Jumbo loans happen when Fannie Mae and Freddie Mac do not cover the full amount of the loan, which normally occurs when homebuyers are looking to buy larger, more luxurious homes, which come with a higher price tag.

Difference between Jumbo Loan and Conventional Loan

 In the past, jumbo loans have required higher interest rates from buyers, but according to the WSJ, low interest rates triggered a refinance flurry in the first few months of 2015 and the volume of jumbo mortgages—those above $417,000 in most places and $625,500 in some high-price areas—reached an estimated $160 billion in the first six months of 2015, up about 36% from a year ago at the same time, says Guy Cecala, publisher of Inside Mortgage Finance, which covers the industry. Since these normally higher interest rates have stayed relatively low, the main difference between a Jumbo Loan and a Conventional Loan is just the higher monetary amount and monthly payments that the loan is for.

Qualifying

So how do you know if you as a borrower qualify for a jumbo loan? To secure a jumbo loan, you must start by having a high credit score (greater than 700), and low debt-to-income ratio (no more than 45%)  . As a lender, there are some risks associated with providing jumbo loans since they are worth more money (and come with the potential to lose more). In order to secure a jumbo mortgage, you will have to put down a higher down payment than with a conventional loan. Along with a higher down payment (typically around 20% of the price of the home), the monthly payments and interest rates will also be higher- although in recent years interest rates for jumbo loans have been reduced. The Washington Post reports that today, the interest rates and down payment requirements are more aligned with conforming loans, making them more appealing for borrowers. Jumbo loan borrowers still typically need to prove they have cash reserves in the bank, a high credit score, a solid employment history and a low debt-to-income ratio in order to be approved.

Remember- jumbo mortgages are great solutions for those looking to buy higher-priced homes, and it is critical to do your research when trying to secure the best value. In the very near future, interest rates for jumbo loans are expected to rise especially if the Federal Reserve raises its interest rate benchmark (expected in September), so for the best rate, don’t wait! Need more assistance? We can help. Contact Alpha Mortgage today and make the first step in securing your jumbo loan.